Greggs has announced plans to cut 740 roles from its factories over two and a half years to reduce costs, as the company warns of rising inflation. The bakery chain is consulting on the closure of four manufacturing sites, which it says is necessary to align production with its growing store network. Despite the job losses, Greggs raised its profit outlook for 2026, citing a “modestly improved outcome” and strong consumer response to new menu items like the Steak and Stilton Bake.

Like-for-like sales rose 3.4 per cent in the third quarter, driven by better weather and product launches. Shares jumped 13 per cent, extending a recent rebound after a difficult period for the stock. The chain now operates 2,796 stores and aims to reach 3,500 locations across the UK, with 100 to 110 new stores planned by year-end.

The factory restructuring is expected to save £20mn annually by 2029.